It
is our policy to request a deposit from tenants equal
to one and a half months rent at the start of the tenancy,
to ensure there are sufficient funds to cover any minor
refurbishment costs there may be, at the end of a tenancy.
Under certain circumstances,
and with the landlords agreement, we will accept a minimum
deposit equal to one months rent at the start of the
tenancy. We would not recommend landlords consider any
less than this.
As at the 6th April 2007,
new rules came into effect governing tenants deposits
under an Assured Shorthold Tenancy, and it is now a
requirement that all tenants deposits be protected either
under an Insurance Backed scheme, or by a Government
appointed Custodial scheme.
The Insurance backed
schemes requires agents or landlords to register with
an approved body and take out an Insurance policy protecting
tenants deposits. The deposits themselves can then be
held by the agent or landlord in a dedicated client
bank account. There are 2 Insurance backed schemes:
THE DEPOSIT PROTECTION
SCHEME and TENANCY
DEPOSIT SOLUTION LTD.
The Custodial scheme
requires agents or landlords to deposit all tenants
deposits, within 14 days of receipt, with the Government
appointed DEPOSIT
PROTECTION SERVICE. It is a FREE
service, so there is no additional cost passed on to
the landlord. Each deposit is given a unique ID number
which can be used to keep track of the deposit by either
agents, landlords or the tenants themselves.
Maidstone & Medway
Property Management has decided on the custodial scheme
provided by the DEPOSIT
PROTECTION SERVICE.
Both schemes offer fast
arbitration in the event of a dispute without the need
for taking court action.
Further information,
including contact details for each of the service providers,
can be found in the Government publication listed, by
clicking on the links below.
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